Quarterly report pursuant to Section 13 or 15(d)

K. COMMITMENTS AND CONTINGENCIES

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K. COMMITMENTS AND CONTINGENCIES
 9 Months Ended
Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES

NOTE K – COMMITMENTS AND CONTINGENCIES

 

Office Lease Obligations

 

Commitments for minimum rentals under non-cancelable leases as of September 30, 2018 are as follows:

 

  2018 (remainder of)     $ 52,272  
  2019       211,448  
  2020       223,417  
  2021       242,785  
  2022       195,176  
  2023 and thereafter       573,883  
  Total     $ 1,498,980  

 

 

Rental expenses charged to continuing operations for the three and nine months ended September 30, 2018 and 2017 was $84,620 and $86,649 and $255,568 and $200,816, respectively.

 

Litigation

 

The Company is subject to legal proceedings and claims which arise in the ordinary course of its business. Although occasional adverse decisions or settlements may occur, the Company believes that the final disposition of such matters should not have a material adverse effect on its financial position, results of operations or liquidity.

 

Sales Tax

 

The following table sets forth the change in the sales tax accrual as of September 30, 2018 and December 31, 2017:

 

    September 30,
2018 		   

December 31,

2017

  
Balance, beginning of year   $ 83,282     $ 274,869  
Sales tax collected     70,758       297,673  
Provisions     22,665       (33,000 )
Interest and penalties     –       (5,890 )
Payments     (139,534 )     (450,370 )
Balance, end of period   $ 37,171     $ 83,282